Question

  

Mostafa, a former disc golf star, operates Mostafa’s Discorama. At the beginning of the

current season on April 1, the ledger of Mostafa’s Discorama showed Cash $1,800, Inventory $2,500, and Owner’s Capital $4,300.

The following transactions were completed during April.

April 5 Purchased golf discs, bags, and other inventory on account from Innova Co. $1,200,

                FOB shipping point, terms 2/10, n/60.

April 7   Paid freight on the Innova purchase $50.

April 9   Received credit from Innova Co. for merchandise returned $100.

April 10 Sold merchandise on account for $900, terms n/30. The merchandise sold had a cost of

$540.

April 12 Purchased disc golf shirts and other accessories on account from Lightning

Sportswear $670, terms 1/10, n/30.

April 14 Paid Innova Co. in full, less discount.

April 17 Received credit from Lightning Sportswear for merchandise returned $70.

April 20 Made sales on account for $610, terms n/30. The cost of the merchandise sold was

                 $370.

April 21   Paid Lightning Sportswear in full, less discount.

April 27 Granted an allowance to members for clothing that was flawed $20.

April 30 Received payments on account from customers $900.

Instructions

1. Journalize the April transactions using periodic inventory system.

Answer 1

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